Why the Financial Sector Needs SMS to Survive

Financial services providers are continuously evolving with their strategies and efforts to differentiate and meet increasing demand for convenient banking services. With the rise of mobile adoption and the transition from cash societies to digital banking especially in emerging markets, relying on technological trends and advancements, such as mobile banking, is no longer a luxury but an immediate business need that differentiates products and service offerings in addition to providing a competitive edge in the market. Financial services providers without an effective mobility strategy will no longer be able to compete in today’s world.

As the market leans towards a more consumer-centric service model, the customer is more involved in the decision making process, and demands to be aware of all updates relevant to their account activities especially those related to banking and financial services. Additionally, the massive rise in fraud, identity theft, spam and others pose a high risk to consumers and service providers alike. Financial services providers, like most other industries today, are faced with a tough choice to balance between security and customer engagement.

Technology Can Help

Fortunately, challenges breed opportunity and technology is not just around the corner but even a few steps ahead. For example, mobile penetration rates have been continuously rising since the early 1990s and there is no looking back. With many standards and protocols for interconnectivity, GSM remains at the forefront of most other alternatives. With a whopping 98% open rate in the first 5 minutes, SMS today remains the fastest, most ubiquitous, and personal communication medium, ideally suited for customer engagement. This enables businesses to effectively communicate vital information with customers quickly and on the go, paving the way for various applications and use cases built on top of SMS and similar services.

Go Mobile!

With mobile adoption rates peaking, and the continuous innovations in mobility functions and features such as smart phones, mobile data and others like Near Field Communication (NFC), customers are becoming more reliant on their mobile phones than ever. People are also more inclined to use products and services that adapt to their “mobilized” lifestyle that facilitate instant service provisioning and feedback, encouraging the financial services industry to shift gears and reposition their offerings accordingly. This means that customers waiting for their banking statements to arrive by snail mail, can instead access critical information on the fly anywhere in the world directly on their mobile phone. More importantly, customers can instantly and securely authorize transactions without waiting for lengthy approval processes and cycles.

How We Can Help

Backed by a growing alliance of MNOs and international SMS gateways, Cequens offers an omni-channel engagement platform that can be customized to fit most enterprise needs. Our clients in the financial industry rely on us for their transaction alerts, confirmation and verification in addition to OTP two-factor authentication (also known as 2-step verification or multi-factor authentication). With a growing list of clients in the financial sector sending billions of mission critical communications worldwide, Cequens is your one-stop customer engagement shop. Chat with Sales today or create your free trial account.